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December 4, 2012

Facebook receives primary privacy settlement nod from US judge

The modified proposal will allow users to claim a cash payment of about $10 each to be paid from a $20m total settlement fund.

By CBR Staff Writer

Facebook has received initial privacy settlement approval from the US District judge Richard Seeborg in California, over a class action lawsuit filed against it for breaching privacy rights.

In August 2012, the Judge rejected a settlement over the social networking firm’s ‘Sponsored Stories’ advertising feature, and accused the firm of breaching privacy rights of its users

Seeborg said that a modified settlement comes within the range of possible approval as fair, reasonable and adequate.

The modified proposal will allow users to claim a cash payment of about $10 each to be paid from a $20m total settlement fund.

Facebook said that it would also develop a new tool that would allow users to view content that may have been viewed in Sponsored Stories and opt out if they wish.

Following the attainment of final approval, the proposed settlement would resolve a 2011 lawsuit originally filed by five Facebook users alleging that the feature breached California law by displaying users’ ‘likes’ of some advertisers.

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